Canada
column for Sunday, Feb. 16/14
THE CANADIAN REPORT
(c) By
Jim Fox
The Conservative government plans to crack down on “unjustified
cross-border (Canada-U.S.) price discrimination” that results in Canadians paying
more for goods.
The federal budget outlined legislation to end “country pricing” where multinational
companies set higher prices for goods in Canada than those charged in the
United States.
Canadians have grown accustomed to paying higher prices for everything
from books, clothing and appliances to tires and auto parts.
Legislation
will address the price gap and empower the country's competition commissioner
to enforce the new rules, said Finance Minister Jim Flaherty.
The government has been under pressure from consumers to do something
about the long-standing price discrimination.
“There
are some companies that look at Canada as a small market, relatively well off,
with a large middle class and willing to pay a little more," he said.
A
Senate finance committee report said there are several “complex factors” behind
the price differences.
These include higher transportation costs across the vast country, the
need for English and French wording on items, more onerous packaging
requirements, provincial regulatory requirements, a smaller consumer market and
tariffs.
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